Public-Sector Digitization: The Trillion-Dollar Challenge

Citizens and businesses now expect government information to be readily available online, easy to find and understand, and at low or no cost. Governments have many reasons to meet these expectations by investing in a comprehensive public-sector digital transformation. Our analysis suggests that capturing the full potential of govern­ment digitization could free up to $1 trillion annually in economic value worldwide, through improved cost and operational performance. Shared services, greater collaboration and inte­gra­tion, improved fraud management, and productivity enhancements enable system-wide efficiencies. At a time of increasing budgetary pressures, governments at national, regional, and local levels cannot afford to miss out on those savings.

Indeed, governments around the world are doing their best to meet citizen demand and capture benefits. More than 130 countries have online services. For example, Estonia’s 1.3 million residents can use electronic identification cards to vote, pay taxes, and access more than 160 services online, from unemployment benefits to property registration. Turkey’s Social Aid Infor­ma­tion System has consolidated multiple government data sources into one system to provide citizens with better access and faster decisions on its various aid programs. The United Kingdom’s gov.uk site serves as a one-stop information hub for all government departments. Such online services also provide greater access for rural populations, improve quality of life for those with physical infirmities, and offer options for those whose work and lifestyle demands don’t conform to typical daytime office hours.

However, despite all the progress made, most governments are far from capturing the full benefits of digitization. To do so, they need to take their digital transformations deeper, beyond the provision of online services through e-government portals, into the broader business of government itself. That means looking for opportunities to improve productivity, collabo­ration, scale, process efficiency, and innovation.